Corporate Governance and Banks: What Have We Learned from the Financial Crisis?

Mehran, Hamid; Morrison, Alan D.; Shapiro, Joel D.

doi:10.2139/ssrn.1880009

Download This Paper

Open PDF in Browser

Add Paper to My Library

Corporate Governance and Banks: What Have We Learned from the Financial Crisis?

FRB of New York Staff Report No. 502

44 Pages Posted: 7 Jul 2011

See all articles by Hamid Mehran

Alan D. Morrison

University of Oxford - Said Business School; University of Oxford - Merton College

Joel D. Shapiro

University of Oxford - Said Business School

Date Written: June 1, 2011

Abstract

Recent academic work and policy analysis give insight into the governance problems exposed by the financial crisis and suggest possible solutions. We begin this paper by explaining why governance of banks differs from governance of non-financial firms. We then look at four areas of governance: executive compensation, boards, risk management, and market discipline. We discuss promising solutions and areas where further research is needed.

Keywords: governance, banks

JEL Classification: G01, G21, G32, G39

Suggested Citation: Suggested Citation

Mehran, Hamid and Morrison, Alan and Shapiro, Joel D., Corporate Governance and Banks: What Have We Learned from the Financial Crisis? (June 1, 2011). FRB of New York Staff Report No. 502, Available at SSRN: https://ssrn.com/abstract=1880009 or http://dx.doi.org/10.2139/ssrn.1880009